This excerpt taken from the NKE 10-K filed Jul 27, 2009.
NON-STATUTORY STOCK OPTION AGREEMENT
Pursuant to the 1990 Stock Incentive Plan (the Plan) of NIKE, Inc., an Oregon corporation (the Company), the Company grants to %%FIRST_NAME%-% %%LAST_NAME%-% (the Optionee) the right and the option (the Option) to purchase all or any part of %%TOTAL_SHARES_GRANTED%-% of the Companys Class B Common Stock at a purchase price of %%OPTION_PRICE%-% per share, subject to the terms and conditions of this agreement between the Company and the Optionee (this Agreement). By accepting this Option grant, the Optionee agrees to all of the terms and conditions of the Option grant. The terms and conditions of the Option grant set forth in attached Exhibit A are incorporated into and made a part of this Agreement. Capitalized terms not explicitly defined in this Agreement but defined in the Plan shall have the same definitions as in the Plan.
1. Grant Date; Expiration Date. The Grant Date for this Option is %%OPTION_DATE%-%. The Option shall continue in effect until %%EXPIRE_DATE_PERIOD1%-% (the Expiration Date) unless earlier terminated as provided in Sections 1, 4 or 5 of Exhibit A. The Option shall not be exercisable on or after the Expiration Date.
2. Vesting of Option. The Vesting Reference Date of this Option is %%OPTION_DATE%-%. Until it expires or is terminated as provided in Sections 1, 4 or 5 of Exhibit A, the Option may be exercised from time to time to purchase whole shares as to which it has become exercisable. The Option shall become exercisable for 25% of the shares on each of the first four anniversaries of the Vesting Reference Date, so that the Option will be fully exercisable on the fourth anniversary of the Vesting Reference Date.
3. Non-Statutory Stock Option. The Company hereby designates the Option to be a non-statutory stock option, rather than an Incentive Stock Option as defined in Section 422 of the United States Internal Revenue Code of 1986, as amended.